Please ensure Javascript is enabled for purposes of website accessibility

5 Must-See Metrics From NVIDIA's Record Quarter

By Daniel Sparks - May 28, 2021 at 6:35AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The graphics-processor company just obliterated analyst estimates.

Artificial-intelligence (AI) and visual-computing semiconductor company NVIDIA (NVDA 4.28%) reported stellar fiscal first-quarter results on Wednesday. Quarterly revenue and earnings for the period soared past analysts' estimates, highlighting the company's momentum during a period in which demand for gaming processors has largely outpaced supply.

The quarter was quite remarkable -- and worth a closer look. Here are five must-see metrics from the quarter.

NVIDIA Grace CPU

NVIDIA Grace CPU. Image source: NVIDIA.

1. Revenue soared 84%

NVIDIA's revenue grew 84% year over year and 13% sequentially to a record $5.66 billion. Analysts, on average, were expecting revenue of $5.41 billion. 

"We had a fantastic quarter, with strong demand for our products driving record revenue," said NVIDIA CEO Jensen Huang in the company's fiscal first-quarter earnings release.

2. Earnings per share skyrocketed 106%

The company's earnings per share more than doubled, rising from $1.47 in the year-ago quarter to $3.03. The metric was also impressively up 31% sequentially.

On a non-GAAP (adjusted) basis, earnings per share rose 103% year over year, from $1.80 to $3.66.

3. Gaming revenue rose 106%

Gaming revenue was one of the biggest drivers of the quarter, more than doubling year over year and hitting $2.76 billion.

In NVIDIA's first-quarter earnings call, management said it believed that gaming "benefited from crypto mining demand, although it's hard to determine to what extent." Demand is so robust that the company expects some gaming inventories to be supply constrained into the second half of the year.

4. Data center revenue topped $2 billion for the first time

NVIDIA's data center revenue rose 79% year over year and 8% sequentially to $2.05 billion.

"Our Data Center business continues to expand, as the world's industries take up NVIDIA AI to process computer vision, conversational AI, natural language understanding and recommender systems," Huang said.

5. Big guidance

NVIDIA expects its rapid growth to persist in fiscal Q2. Management guided for revenue to rise to about $6.3 billion -- an 11% sequential increase. Analysts, on average, were expecting revenue in the period to be $5.5 billion.

Overall, the impressive performance from the quarter helped justify the growth stock's recent surge higher. Shares are up more than 19% year to date -- and they rose 14% over the past three months.

Following an incredible quarter like this and given management's robust guidance, investors should think twice before they consider doing some profit-taking on NVIDIA shares. This company's growth story appears to be far from over.

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NVIDIA Corporation Stock Quote
NVIDIA Corporation
NVDA
$187.09 (4.28%) $7.67

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.